Following the report from Bloomberg that Asian Development Bank (ADB) is expecting to sell 176,000,000 shares of GULF and 68,000,000 shares of BGRIM at a discount around 4-5%, the source close to a financial field revealed to “Kaohoon Online” that ADB required to allocate its investment in energy stocks due to the impact of coronavirus outbreak.
It has been anticipated that ADB has been selling a lot of stocks during the coronavirus crisis, causing its proportion in power generation stocks to top other sectors, which led to a force-sell in GULF and BGRIM.
The source stated that the allocation and adjustment are very common and seen by leading funding companies such as Temasek Holdings, a Singaporean holding company.
Bloomberg reported that ADB holds 3% of Gulf Energy Development Plc. (GULF) since the IPO (at THB 45.00 per share), and the bank is offering 176,000,000 shares or 1.7% of shares outstanding in a placement at a discount of 4.0-5.0% to last close of ฿37.00/share on July 22, 2020 (around THB 35.15 – 35.52 per share).
In the meantime, the bank is also offering 68,000,000 shares or 2.6% of BGRIM’s shares outstanding in a placement at a discount of 4.2-5.5% to last close of ฿53.75/share on 22 July, 2020 (around THB 50.80 – 51.50 per share). ADB holds an existing 4.72% of BGRIM’s shares since the IPO (at THB 16.00 per share).